Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a mobile oil change operation.
This article will discuss the primary insurance coverage for mobile oil change companies, general liability insurance, as well as additional policies that are appropriate for this industry.
Mobile Oil Change Shops Need General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
GENERAL LIABILITY INSURANCE MAY COVER COMMON SITUATIONS FOR A MOBILE OIL CHANGE SHOP
Example 1: A client goes around his car as you change the oil, stumbles over your toolbox, falls and fractures his arm, and demands that your company pay for his medical expenses. His medical expenditures would be covered by general liability insurance.
Example 2: You spill oil on a customer’s open laptop bag during an oil change, destroying her pricey laptop. She requests that you get her a replacement. The expense of replacing the customer’s damaged property would be covered by general liability insurance.
Example 3: A rival sues you for defamation. While you deny the charge, you want to engage a counsel as quickly as feasible. Your legal bills and any needed settlement would be covered by general liability insurance.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
In America, mobile oil change firms pay between $450 and $1,000 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Mobile Oil Change Shops
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all mobile oil change companies should have include:
Insurance for Commercial Vehicles
In the case of an accident, any vehicle you use mainly for your mobile oil change service needs commercial car insurance to safeguard the vehicle, driver, and others on the road. Choose a policy that not only covers accident-related vehicle repair expenses and medical care for anybody harmed, but also provides enough coverage for any company property you transport in your vehicle.
Insurance for Professional Liability
While you work hard to provide the quality of service and reliability that your clients demand, there is always the possibility that someone could claim your advise or professional service did them damage. If a consumer sues your company for carelessness, professional liability insurance will pay your legal bills as well as any compensation necessary.
Coverage Options for Some Mobile Oil Change Shops
In addition to the insurance listed above, your mobile oil change company may need other forms of coverage based on particular features of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Workers’ Compensation
Most states will require you to have workers’ compensation insurance for your part-time and full-time employees if you have any. This coverage covers your workers if they are hurt at work or get sick as a result of a workplace accident. It covers not only an employee’s medical expenditures and lost pay if they need time off to recuperate, but also any disability or death benefits resulting from a workplace accident.
Umbrella Insurance for Businesses
While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.